Gordon Dixon's prospect is perfect. He can see the Opera House and the harbour bridge across the water from the office he is setting up now that the Olympics have enticed his British company, Frazer Nash, to Sydney.

Sydney was staggering back to work yesterday with a splitting headache from the final parties, prolonged by a bank holiday. The economic hangover widely predicted to follow the games may lift more easily, as a bumper crop of tourists and businesses are lured to Australia by the dazzling impression the city left on the Olympics' global audience.

"We knew that you don't get much better than the Olympics in terms of a worldwide audience to showcase your product," said Mr Dixon, who is the company's director of regional operations. "Such was the response to our vehicles that we decided to establish a permanent home here in Australia."

The Olympics offered minnows such as Frazer Nash the chance to mingle with corporate giants and potential clients. Wise to the event, the Australian government milked it for all it was worth, setting up a business club which held more than 100 networking events.

When the New South Wales government bid for the Olympics in the early 1990s, its treasury withheld its support, fearing a repeat of the disastrous 1976 games, which left Montreal bankrupt.

But the state treasurer, Michael Egan, has told taxpayers that Sydney 2000, which cost the commonwealth and state government £1.2bn, has been completely paid for, and has dismissed the fear that the end of the building boom will harm the city's finances.

Nevertheless, the government has outlined a four-year investment programme, involving new roads, railways and hi-tech business parks costing £7.9bn: £1.3bn more than it provided in the four years leading up to the games. It is intended to provide 130,000 jobs, compensating for the 50,000 lost with the end of the Olympics.

To capitalise on Sydney's exposure, the Australian Tourist Commission has launched 90 new advertising campaigns across the world, although its US advert, starring the old Australian staples Paul Hogan and a talking Koala, has underwhelmed its critics.

The Arthur Andersen management consultancy have estimated that the Olympics will add £6.3bn to the GDP of Australia in the six years either side of the games. But Mr Egan said that the most important impact of the games would be the statistically untraceable decisions of individuals sold on Sydney.

"The real economic advantage . . . is a very long-term one and it comes from repositioning our international investment and trading reputation in the world. The best comparison is the Tokyo Olympics in 1964, which changed the world's perception of the economy of Japan.

"Most people who know anything about us see us as a farm by the sea. The Olympics will certainly dispel that myth."

How others fared

Montreal 1976

The games practically left the city bankrupt. Local taxpayers are still paying the Olympic bills today

Moscow 1980

Survived with massive state funding, but the US boycott ensured it did not thrive

Los Angeles 1984

For the first time the games were financed by private enterprise rather than central government, and they made a £125m profit.

Seoul 1988

Projects turned a £30m profit but, more important, South Korea saw the games as the turning point in its tourist industry. Its economy also grew by 12% in 1988

Barcelona 1992

The Olympics led to the city's rejuvenation through a widely admired urban redevelopment programme. Academic Mark Schuster said the organisers reported that one main consequence was a greater spirit of voluntarism in residents, who had gained more respect for their city

Atlanta 1996

May have earned a £300m profit rather than the forecast £3.4bn. Surveys of business leaders suggested that it encouraged companies to regard the city more favourably